Ethiopia-China Debt Talks

 The Ethiopian News Agency posted on 3 April 2026 an article titled "Landmark Ethiopia-China Talks Unlock Debt Deal, New Airport Financing."

Discussions between the Ethiopian and Chinese ministers of finance "marked a meaningful step" in restructuring Ethiopia's existing debt stock.  They reportedly reached agreement on debt treatment but did not sign a final agreement.

Ethiopia Today published on 3 April 2026 an article titled "From Dollars to Yuan: Ethiopia and China Move Toward a New Era of Financial Cooperation."

Reporting on a meeting between the governors of the National Bank of Ethiopia and the People's Bank of China, this account said the two countries are exploring an aggressive shift toward the Chinese Renminbi (RMB) to bypass the U.S. dollar in bilateral trade.

Impact of China's Economic Slowdown on Africa

 The Atlantic Council published in November 2025 a study titled "China's Economic Slowdown and Spillovers to Africa" by Matthew Mingey, Jeremy Smith, and Laura Gormley.  

This report investigates how different projections of China's economic growth and structure over the next five years will affect trade and financial engagement with the African continent and what outcomes will mean for decision-makers.

The best long-term outcome for Africa is likely one in which China accepts the cost of reform to implement slower, but more stable growth.  While countries could previously envision the net benefits of close trading relationships with China in 2030, trade now presents both opportunity and threat: opportunity in the form of cheap imports but complication in the form of persistent trade imbalances and overcapacity in manufacturing.  Under any growth scenario, finance from China's banks and investors will continue to decline as China's domestic financial system evolves.  

China Expands Its Currency in Africa

 The Diplomat published on 3 November 2025 an analysis titled "Debt Relief as Currency Strategy: China's Renminbi Push in Africa" by Monique Taylor.

Kenya has converted part of its Chinese loans from U.S. dollars into renminbi (RMB), while Ethiopia is negotiating a similar arrangement.  This allows the borrowing country to reduce its debt servicing costs and permits China to turn debt distress into a strategic opening to expand the RMB's international use.

China Expands Use of Yuan in Africa

 The Nanyang Technological University posted on 26 June 2025 an article titled "Yuan Payments System Makes Inroads in Africa."

China has added two African financial institutions--African Export-Import Bank and the Johannesburg-based Standard Bank--to its Cross-border Interbank Payments System (CIPS), which is an alternative to the Swift international payments network.

CIPS enables Chinese and foreign banks to clear and settle cross-border payments in Chinese Yuan.  The system is a key part of China's strategy to promote the use of the Yuan in global trade and insulate it from potential adverse Western actions.

China's Lending to Africa in a Time of Global Turmoil

 The Center for Global Development published on 17 March 2025 an analysis titled "Channeling the FOCAC 2024 Financing Pledge in a Time of Global Turmoil" by W. Gyude Moore.

This study looks at China's lending to African countries following the 2024 Forum on China-Africa Cooperation, increasing debt challenges in Africa, and global trends that are restricting financing available for African countries.   

China's Economic Transition and Relations with Africa

 The Carnegie Endowment for International Peace published in May 2024 an analysis titled "How Is China 's Economic Transition Affecting Its Relations with Africa?" by Zainab Usman and Tang Xiaoyang.

The analysis considers the impact of China's slowing economic growth on its trade, investment, monetary, loan, and soft power ties with Africa.  It also takes into account the actions of Africa's other partners, especially the United States.  

China's Central Bank Digital Currency and African Finance

 The South African Institute of International Affairs published in February 2024 a paper titled "China's Central Bank Digital Currency: A New Force in African Finance?" by Lauren A. Johnston. 

The paper sets out the basics of a central bank digital currency (CBDC) and of China's digital currency, the e-CNY, in the African context.  It offers suggestions on areas of debate that might be encouraged to bring the CBDC out of monetary halls and into the arena of public interest debate.

China-Mauritius Relations

 Le Mauricien published on 2 August 2022 an article titled "Reframing the Sino-Mauritian Ties in the Context of Emerging Africa."

The article emphasizes the importance of Mauritius as a financial center for Chinese activity in Africa and how the China-India relationship plays out in Mauritius.  

How Will China Respond to Global Debt Crisis?

Panda Paw Dragon Claw posted on 21 June 2020 a commentary titled "How Will China Handle Multiple Debt Repayment Crises?" by Ma Tianjie. 

As global demand for commodities such as oil and minerals collapses, the revenue streams of exporter countries, many of which are located in Africa, have dried up.  This has led to a growing debt crisis in Africa where China holds between 17 and 20 percent of all external debt. 

President Xi Jinping pledged to write off all zero-interest loans owed to China by African countries that are due this year.  But these loans make up less than 5 percent of China's lending to Africa between 2000 and 2018.

China may not have the luxury to review its overseas lending stock on a loan-by-loan, country-by-country basis as it seems to prefer.  The debt tsunami is on its way and how China manages the challenge will be a key test of its international diplomacy, understanding of global finances, and the future of the Belt and Road Initiative. 

Africa and the New Silk Roads

Thierry Pairault, research director emeritus at France's Centre National de la Recherche Scientifique, posted on 31 August 2018 a study titled "Africa and the New Silk Roads."

The author correctly notes that in terms of foreign direct investment and trade Africa is a minor economic partner for China, although China is a major economic partner for Africa. China is largely following a commercial strategy in Africa: selling goods and services. In the context of China's Silk Road strategy, he takes a closer look at China's engagement in Morocco and Djibouti. Pairault concludes that Morocco will allow China better access to the European Union market and eventually the African market. Djibouti, although having some utility for extending China's security reach, is more importantly a key link in China's Digital Silk Road and its efforts to leapfrog Western financial competitors by building a digital money system.

China's Commercial Footprint in Africa

Standard Bank of South Africa published on 23 August 2018 an overview titled "Forum for China-Africa Cooperation: Africa Still Solidly in the Crosshairs of China Growth" by Jeremy Stevens.

The paper looks at China's economic engagement with Africa, especially investment and trade. It suggests that China's foreign direct investment in Africa remains small, averaging just over $2 billion annually during the last 15 years. It puts China's total investment stock in Africa at between $50 billion and $60 billion. The study says there may be significantly more--upwards of 30,000--Chinese companies, most of them small and private, in Africa than has been previously reported. It comments on Africa's growing trade deficit with China and predicts that about 30 percent of China's trade with Africa will be settled in renminbi by 2025.

The Future of China's RMB in Africa

The Institute for Security Studies (ISS) published on 13 August 2018 a commentary titled "Can China Free Africa from Dependency on the Mighty Dollar?" by Peter Fabricius, ISS consultant.

Only 3 to 5 percent of all global foreign exchange transactions are now in China's RMB and about 75 percent are in dollars. The RMB will become a much more important currency in trade and foreign reserves. While Chinese currency swaps will help African and other countries reduce their dependencies on the dollar, they will not end them.

Nigeria Begins Using China's Yuan As Reserve Currency

Quartz Africa published on 2 August 2018 an article titled "Nigeria Has Taken Its First Steps in Adopting China's Yuan As a Reserve Currency" by Yomi Kazeem.

Nigeria has begun selling Chinese yuan to local traders and businesses as an alternative trading currency in order to avoid the hassle of first converting to US dollars.

China's Yuan in Africa

Australia's RN Drive posted on 6 June 2018 a podcast titled "The African Yuan" with Lauren Johnston, a consultant with the World Bank's Beijing office.

Johnston suggests African nations are moving closer to adopting China's yuan as a reserve currency and discusses additional China-Africa economic issues in a ten minute podcast.

China's Yuan To Serve as Reserve Currency in Africa?

Quartz Africa posted on 29 May 2018 an article titled "There Is Growing Momentum to Adopt China's Yuan As a Reserve Currency in Africa" by Abdi Latif Dahir.

African central bank leaders from southern and eastern Africa recently discussed whether to hold the Chinese Yuan as part of their foreign reserves. The discussion underscored China's push to internationalize its currency to promote trade and investment.

The Herald (Zimbabwe) published on 11 June 2018 an article titled "Zim Should Consider Adopting China's Renminbi."

China/Nigeria Currency Swap Deal

Ventures published on 8 June 2018 an article titled "How Much Does the Chinese Currency Sale Improve the Nigeria-China Trade Imbalance?" by Feranmi Akeredolu.

The Central Bank of Nigeria and People's Bank of China recently signed a Naira/RMB currency swap agreement. It is not clear if the swap deal will have any significant positive impact on Nigeria's large trade deficit with China.

Use of China's Renminbi in Africa

The Centre for Chinese Studies (CCS) at Stellenbosch University published on 19 September 2016 an analysis titled "The Internationalisation of Renminbi in an African Context" by Yi Ren Thng, CCS visiting scholar.

The author noted that African firms stand to gain from greater Renminbi usage for trade settlement of receipts and payments with their Chinese counterparts. At the same time, he noted that complications concerning additional usage of the Renminbi may restrict it to trade settlement.

Rise of China's Renminbi in Africa

The Centre for Chinese Studies (CCS) at Stellenbosch University published on 19 September 2016 a commentary titled "The Internationalisation of Renminbi in an African Context" by Yi Ren Thng, visiting scholar at CCS.

The RMB has become increasingly important in African trade settlements with China, but the author suggests there are challenges for the RMB to move beyond trade settlement.

Increased Usage of China's Renminbi in South Africa

Swift.com published on 24 August 2016 an article titled "RMB Continues to Penetrate the South African Market." Renminbi (RMB) usage in payments in South Africa increased by 65 percent over the last 12 months, strengthening the country's trade relations with China and Hong Kong.

Sudan to Use Chinese Currency in Trade Exchanges

The Sudan Vision published a story on 31 January 2015 titled "Sudan Heading towards Using Chinese Currency in Trade Exchanges."  On a visit to China, Sudanese Finance Minister Badreldin Mahmoud said Sudan aims to use Chinese currency in trade and investment to enhance and reinforce economic cooperation with China.  He also noted that Sudan relies heavily on Chinese companies for investments.